Missouri Incentives and Laws for Biodiesel
The list below contains summaries of all Missouri incentives and laws related to Biodiesel.
State Incentives
Alternative Fueling Infrastructure Tax Credit
For tax years beginning before January 1, 2012, an income tax credit is available for the cost of constructing a qualified alternative fueling station. The amount of the credit is 20% of the costs directly associated with the purchase and installation of any alternative fuel storage and dispensing equipment, up to $20,000. The total amount of tax credits claimed may not exceed $1 million for the 2011 tax year. Tax credits may be carried forward for two years and may be transferred or sold, but will be forfeited if a tax credit recipient stops selling alternative fuel. Eligible fuels include any mixture of biodiesel and diesel fuel, as well as fuel containing at least 70% of the following alternative fuels: ethanol, compressed natural gas, liquefied natural gas, liquefied petroleum gas or propane, and hydrogen. (Reference Missouri Revised Statutes 135.710)
Point of Contact
Cindy Carroll
Energy Specialist
Missouri Department of Natural Resources, Missouri Energy Center
Phone: (573) 751-3443
Fax: (573) 751-6860
cindy.carroll@dnr.mo.gov
Biodiesel Fuel Use Incentive
Through the 2011-2012 school year, school districts are allowed to establish contracts with nonprofit, farmer-owned, new generation cooperatives to purchase biodiesel blends of 20% (B20) or higher for use in operating buses. Every school district that contracts with an eligible new generation cooperative for biodiesel will receive an additional payment through its state transportation aid payment if there is an incremental cost to purchase the biodiesel. (Reference Missouri Revised Statutes 414.433)
State Fleet Biodiesel Fuel Use Incentive
The Missouri Biodiesel Fuel Revolving Fund uses the money generated by the sale of Energy Policy Act of 1992 (EPAct) credits to cover the incremental cost of purchasing fuel containing biodiesel blends of at least 20% (B20) for state fleet vehicle use. (Reference Missouri Revised Statutes 414.407)
Laws and Regulations
Alternative Fuel Vehicle (AFV) Acquisition and Alternative Fuel Use Requirements
A state agency that operates a vehicle fleet consisting of 15 vehicles or more must ensure that at least 50% of new vehicles purchased over a defined biennial period are capable of operating using an alternative fuel. Excess acquisitions of AFVs may be credited towards future biennial goals. If a state agency fails to meet a biennial acquisition goal, purchases of any non-AFVs are not permitted until the goals are met or an exemption or goal reduction has been granted. In addition, 30% of the fuel purchased annually for use in operating state fleet vehicles must be alternative fuels. (Reference Missouri Revised Statutes 414.400 and 414.410)
Biodiesel Use Requirement
At least 75% of the Missouri Department of Transportation (MoDOT) vehicles and heavy equipment that use diesel fuel must be fueled with biodiesel blends of at least 20% (B20), if such fuel is commercially available. The blended biodiesel fuel will be considered commercially available if the incremental purchase cost is not more than $0.25 compared to conventional diesel fuel. To the maximum extent practicable, MoDOT may obtain funding for the incremental cost of the blended biodiesel fuel from the state's Biodiesel Fuel Revolving Fund. (Reference Missouri Revised Statutes 414.407 and 414.365)
Alternative Fuel Vehicle (AFV) Decal
The $0.17 per gallon motor fuel tax does not apply to passenger vehicles, certain buses, or commercial vehicles that are powered by an alternative fuel. The owners or operators of such vehicles are required to pay an annual alternative fuel decal fee as follows (certain restrictions apply):
| Gross Vehicle Weight | Type of Vehicle | Decal Fee |
|---|---|---|
| 18,000 pounds (lbs.) or less | Passenger, School Bus, or Commercial | $75 |
| 18,000 lbs.-36,000 lbs. | Farm or Farming Transportation with an 'F' License Plate | $100 |
| 18,000 lbs.-36,000 lbs. | Passenger-Carrying and Other Motor Vehicles | $150 |
| 36,000 lbs. or more | Farm or Farming Transportation with an 'F' License Plate | $250 |
| 36,000 lbs. or more | All Other Motor Vehicles | $1,000 |
A vehicle that requires an alternative fuel decal may not operate on state highways without a valid decal. No person may fuel an AFV with liquefied petroleum gas (propane) or natural gas unless the vehicle has a valid decal. Motor vehicles licensed as historic vehicles that are powered by alternative fuels are exempt from the motor fuels tax as well as the alternative fuel decal requirement.
(Reference Missouri Revised Statutes 142.803 and 142.869)
Alternative Fuel Promotion
The Missouri Alternative Fuels Commission (Commission) promotes the continued production and use of alternative transportation fuels in Missouri. The Commission submits a report annually to the governor and general assembly and provides recommendations on changes to state law to facilitate the sale and distribution of alternative fuels and alternative fuel vehicles; promotes the development, sale, distribution, and consumption of alternative fuels; promotes the development and use of alternative fuel vehicles and technology that will enhance the use of alternative and renewable transportation fuels; educates consumers about alternative fuels; and develops a long-range plan for the state to reduce consumption of petroleum fuels. (Reference Missouri Revised Statutes 414.420)
